The next generation of tenants can afford to be picky. With the number of highly coveted amenities increasing every day, tenants are taking advantage of the space and leasing options available. So, why not offer the best benefits?
Submetering tenant spaces helps both landlords and tenants with one solution. Tenants can utilize submeter data to reach sustainability targets, ensure accurate billing, and measure individual efforts. Plus, property energy goals – save money, increase your Energy Star Score, gain a competitive advantage – depend on tenants’ engagement, so property managers and other key stakeholders benefit as well.
Here are 5 reasons why submetering tenant spaces is a priority for both tenants and landlords:
1. Make Tenant Billing Accurate And Effortless
In a triple net lease, tenants trust landlords to accurately and fairly charge them for energy use. But without submeters, how does a landlord know how much to charge?
Often, landlords will charge each tenant a portion of the total energy bill by square feet of the leased space. However, this can lead to unfair billing if, for example, a restaurant (i.e. a water-intensive business) and a clothing retail shop (requiring little water) of the same square footage are charged the same amount on their water bill, even though one tenant consumed much more than the other. By utilizing submeters, landlords can charge each tenant accurately by the amount the tenant consumed during that billing period, rather than a manual, time-consuming estimation.
To make this process even easier, utilize an automated tenant billing system that can calculate tenant invoices using your existing submeter data. Engineers and property managers will never walk the building again, plus tenants can trust that their bills are accurate and on-time every billing cycle.
2. Tenants Want Energy Data Visibility, Too.
While having accurate energy bills is great, tenants want to see their own real-time data for their space. This offering allows landlords to interact more with tenants and provide a unique offer, giving the building a competitive advantage.
With real-time energy data, tenants can see how their behavioral changes affect utility bills. Each sustainability effort tenants make will be visible in the energy consumption data, motivating them to reduce their energy consumption through simple adjustments likes plug load and heating during off hours.
Submetering tenant spaces will help make informed efficiency decisions and advance sustainability initiatives. Meanwhile, these efforts also make buildings themselves more sustainable, and helps equipment and machinery last longer.
3. Identify Sustainability Project’s ROI with Measurement and Verification
Let’s face it: one of the major reasons why sustainability is still a “nice to have” is the myth that sustainability projects are expensive. But it’s just a myth; property managers and tenants alike have found great value in taking the extra step to be more energy efficient.
For every energy conservation measure (ECM) taken, key performance indicators and data are necessary. Before investing in new lighting or implementing other ECMs, have the right tools in place to collect the right metrics. Submeters can collect data to establish a baseline energy consumption, track progress, and see the direct payback of each initiative.
Tenants are increasingly negotiating submeters as part of their leases.
4. Become a Corporate Responsibility Leader
Corporate responsibility is an increasingly important factor in every organization. Many companies – tenants, property managers, and building owners alike – want to understand their effects on the planet. Submetering allows visibility into how and when energy is consumed, allowing key decision-makers to identify inefficiencies and take immediate action to curb waste.
Submeter data allows tenants and property managers to participate in sustainability and energy efficiency competitions. These competitions look at building electricity, water, and gas consumption compared to other similar buildings to judge how sustainable the building is designed and operated. This can bring great attention to the building, increasing the value of the asset.
5. Participate In Energy Benchmarking & Reporting
Benchmarking and reporting electricity, water, and gas data through submeters provides the best look at how your building stacks up to the competition. Energy Star provides a score from 0-100 that rates a building on energy efficiency compared to similar use buildings in comparable climates.
Increasingly, local governments are requiring benchmarking reporting and posting the results available to the public. As the movement to transparency grows, more buildings will be required to report accurate consumption data. Submeters help property managers collect investor grade data while simultaneously providing the information needed to effectively reduce consumption. Plus, reporting energy data publicly can help property managers operate more efficiently and promote their efforts.
Often times, property managers and tenants have similar building goals: both want to save money, be recognized for corporate responsibility efforts, engage stakeholders, and have transparent access to your energy consumption. Submetering provides a single solution for all of these needs. Isn’t it time to take your space to the next level?